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Daily (21.11.2019): The 3.3% hike in WTI crude due to a lower-than-predicted growth in U.S crude inventories lent support to the entire energy complex

21/11/201912:02Daily

Oil prices increased on Wednesday following a report indicating that U.S crude inventories rose less than expected. Moreover, Russia promised to continue its cooperation with OPEC to maintain a balanced oil market. Brent crude jumped by 2.5% to $62.40 a barrel. WTI crude climbed by 3.3% to $57.01 a barrel.

British gas prices were bullish on Wednesday tracking gains in the oil market. The day-ahead gas price surged by 1.4% to 40 p/therm. Further along the curve, the Summer 2020 delivery contract ended 1% higher at 38.42 p/therm.

European electricity spot prices had a downward evolution on Wednesday. The German spot power price fell by 5.9% to 50.09 euros/MWh on high wind power generation. The French day-ahead power price dropped by 5.3% to 56.24 euros/MWh, due to steady nuclear availability.

Along the curve, power contracts traded slightly higher on Wednesday, amid a bullish energy complex. The German Cal20’ delivery contract inched 0.3% up at 45.26 euros/MWh. At the same time, the French equivalent contract closed 0.3% higher at 47.88 euros/MWh.

European carbon prices rose by 2.6% to close above the €24 level on Wednesday following a hike in oil prices, which lent support to the entire energy complex. The 2020-expiry contract closed 2.5% higher at 24.03 euros/tonne.

Crude oil futures gained ground in the last trading day of the month after the release of the EIA’s report showing a further drop in oil well drilling in the United States. Hence, Brent crude for July delivery rose slightly to $35.33 a barrel, while, the more active August contract settled at $37.84, edging $1.81 higher, or roughly 5%. WTI crude for July delivery settled at $35.49 a barrel, surging $2.24, or 5.3%.